The next Pixel phone might be cheaper for people in the US, and the reason is quite surprising. Google is completely leaving China and will move production to Vietnam and India. And this could have implications for the price of Pixel phones, especially units sold in the US.
Pixel production to be moved away from China
Google is moving Pixel production out of China. | Image by Flickr
According to Nikkei Asia, Google will stop making Pixel phones, or any Pixel device for that matter, in China starting in 2027.
The move comes amid ongoing tensions between China and the USA and could potentially benefit US customers in the long run.
According to Counterpoint research, the financial hit for China will be minuscule, given the Pixel device production volumes. India and Vietnam, on the other hand, will receive another big boost after Apple moved part of the iPhone production in the country.
Finally, moving Pixel manufacturing to India could benefit US-bound volumes of Pixel devices, as the country has a much lower tariff compared to China.
Would you buy a cheaper Pixel phone made in India?
Cheaper Pixel phones from factories outside China?
India and Vietnam have lower tariffs compared to China. This could potentially result in cheaper Pixel phones. | Image by Gizbot
That's a possibility. But it's more likely for the Pixel phone prices to remain stable. The lower tariff burden could help Google offset some of the effects of the ongoing chip shortage.
Furthermore, Google will have to move a lot of equipment and build the production and testing processes from scratch, especially in Vietnam.
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Google could tap into the supply chain already in place for Samsung's production in Vietnam, which can help. Given that these two companies have collaborated before, it's not out of the question.
What about quality?
Quality issues plagued the Pixel 6 production. | Image by Reddit
Moving out from China to a brand new manufacturing location comes with risks. Setting up the production line from scratch and hiring new personnel could result in lower overall quality and slower production, at least in the beginning.
Would that affect Pixel phones on the shelves? Let's hope not, as the QC processes are well established and "lemon" units are not likely to slip into the final batches ready for shipment. But it can't be ruled out completely.
Google leaving China to be much easier than Apple
China remains the largest assembly base for iPhones. | Image by Foxconn
According to Nikkei Asia, the decision to leave China is much easer for Google than for Apple, for example. Google doesn't officially sell Pixel phones in China and also doesn't have a software presence in the country, as China banned Google's services back in the early 2000s.
The Pixel user base in China is very small, and Google won't lose a market share that doesn't really exist.
Apple, on the other hand, is very popular in China and is in a tight battle with Huawei for the top spot when it comes to market share. Both companies have around 20% of the smartphone market share in the country, so leaving could result in big financial losses for Apple.
Google to raise Pixel shipments by 8-10%
On top of the huge change in manufacturing, Google also has told suppliers that it plans to raise Pixel production in 2026. Last year, the company shipped 12 million Pixel phones, and this year the company wants to boost that number by 8-10%.
Of course, Google uses its Pixel phones to peddle software products, such as Gemini. That's why the revenue from Pixel sales alone is not that important, but the larger the volume, the more people could potentially get into Google's software ecosystem and pay for Google One or Gemini.
What do you think about all this? Would you buy a Pixel phone made in India or Vietnam if the price is lower or at least there's no price hike for the Pixel 12 and 13?
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Mariyan, a tech enthusiast with a background in Nuclear Physics and Journalism, brings a unique perspective to PhoneArena. His childhood curiosity for gadgets evolved into a professional passion for technology, leading him to the role of Editor-in-Chief at PCWorld Bulgaria before joining PhoneArena. Mariyan's interests range from mainstream Android and iPhone debates to fringe technologies like graphene batteries and nanotechnology. Off-duty, he enjoys playing his electric guitar, practicing Japanese, and revisiting his love for video games and Haruki Murakami's works.
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